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Oil and gas conglomerate BP managed to sell this week its entire 7% stake in the world's largest private owner of oil, Russia's Lukoil, in the biggest equity capital markets transaction ever done in a Russian stock. The Eu657m combined equity and equity-linked offering, executed by Credit Suisse First Boston and UBS Warburg, demonstrates that investor interest in Russia is picking up again. The issue was popular, and both tranches were well covered. The equity-linked paper was priced outside the terms used for bookbuilding, but still rose a staggering 8% on the first day of trading. The equity was sold at $40.375, the bid side of Monday's closing price, although this was down 11.8% from Friday's close of $45.75. "People were not asking for an explicit discount to market price," said a banker close to the deal. Another added: "We had pretty strong interest for the equity. It was helped by the momentum of the exchangeable." Lukoil was trading yesterday (Thursday) at $10.05 per share, or $40.2 per American depository share (ADS).

Oil and gas conglomerate BP managed to sell this week its entire 7% stake in the world's largest private owner of oil, Russia's Lukoil, in the biggest equity capital markets transaction ever done in a Russian stock. The Eu657m combined equity and equity-linked offering, executed by Credit Suisse First Boston and UBS Warburg, demonstrates that investor interest in Russia is picking up again. The issue was popular, and both tranches were well covered. The equity-linked paper was priced outside the terms used for bookbuilding, but still rose a staggering 8% on the first day of trading. The equity was sold at $40.375, the bid side of Monday's closing price, although this was down 11.8% from Friday's close of $45.75. "People were not asking for an explicit discount to market price," said a banker close to the deal. Another added: "We had pretty strong interest for the equity. It was helped by the momentum of the exchangeable." Lukoil was trading yesterday (Thursday) at $10.05 per share, or $40.2 per American depository share (ADS).

UK fund manager Prudential M&G this week priced the first ever sterling arbitrage collateralised debt obligation via Morgan Stanley Dean Witter. Although historically arbitrage deals were often associated with CDOs backed by high yield bonds and loans, the assets backing Panther CDO 1 BV are predominantly investment grade.

Doughty's Rank Hovis plan rewrites whole business rules. Although RHM owns 12 flour mills in the UK, and this property will be included in the deal, it will not be protected to the extent of assets such as motorway services where regulatory barriers protect competitors from setting up within 30 miles.

Banca Popolare di Bergamo (BPB) this week launched its second securitisation via a Eu331m deal backed by performing Italian mortgages and UK residential securities. Lead managed by Schroder Salomon Smith Barney, the deal priced amid an abundance of Italian issues in what looks set to be a bumper year for securitisation in the country.

Bank of America last Friday completed a £65m securitisation backed by consumer store cards and loans generated by Clydesdale Financial Services, the consumer credit division of high street retailer Next plc. The deal will finance the acquisition of Clydesdale Financial Services by Carnegie Holdings Limited, the joint venture which is 90% owned by Barclays Private Equity and 10% by Clydesdale's existing management.

Korea's government has announced the "second stage" of its financial restructuring programme, starting with the creation of two "super-banks". The merger of Kookmin and H&CB, apparently through the choice of its own CEOs, makes sense. But the creation of a holding company including Hanvit and a group of regional banks seems, at best, eccentric. But what seems practical elsewhere in the world doesn't necessarily work in Korea. By Chris Wright.

Singapore continues to keep its head above water but with total exports representing 135% of GDP the island-state remains extremely vulnerable. No better time to reach out beyond its Asean neighbours to consolidate its position within the global economy, reports Fiona Haddock.

The government view. Interview with Kap Soo Oh, assistant governor of the Financial Supervisory Service.

For three years he battled to implement a restructuring plan at Thai Petrochemical Industry, the country's biggest and most recalcitrant corporate debtor. Now following a landmark ruling from the Central Bankruptcy Court he has seized control of the corporation on behalf of creditors. Can Anthony Norman pull off the most important restructuring case in Thailand's recent corporate history? By Ben Davies.

The Bank of East Asia has launched what is expected to be the new benchmark for investment-grade subordinated debt offerings in the region. The US$550 million lower tier 2 placement is the largest sub debt deal in non-Japan Asia in the past 12 months. Sole bookrunner and lead manager was JP Morgan, with Barclays Capital acting as joint lead manager. The bond was carefully structured to utilize the efficient 10-year step-up five structure to avoid capital amortization. What this means is that BEA will be able to call the bond after five years when the regulatory authorities will start reducing the portion of the money raised to be allowable for capital adequacy purposes. This in effect means that if the bank held on to the bond proceeds after five years, it would be paying a premium for the funds.

Bank amalgamation continues apace in India with the recent merger of two domestic private sector banks – ICICI Bank and Bank of Madura. The share swap deal (at a ratio of two ICICI Bank shares to one Bank of Madura share) took effect on February 1, with ICICI effectively the acquiror. The deal is the second private sector bank merger in recent months – HDFC Bank acquired Timesbank last year – and the trend is expected to continue. Furthermore, three foreign banks – HSBC, Standard Chartered and BNP Paribas – have shown interest in purchasing Indian banks, provided the regulatory framework is in place. It's not yet clear, however, whether the Reserve Bank of India (RBI) would approve such a move.